Two executives from the one-year-old South Korean cryptocurrency exchange Komid have been jailed on charges that they inflated trading volume and falsified volume reports, according to recent reports from News Asia. The scheme reportedly included 5 million fabricated transactions designed to deceive investors, which enabled the duo to fraudulently earn about $45 million.

Komid CEO Choi Hyunsuk was given a three-year sentence. The other defendant was identified by his surname, Park. He received a two-year sentence after being accused of misconduct, fraud, and embezzlement. Park reportedly told the court how the duo carried out the scheme:

The defendant Park said about his accomplice, “Choi entered false orders, then we repeated the process and fooled investors into thinking the transactions were authentic, organic trades.”

In addition to the volume falsification, prosecutors also believe that the two men may have used a bot program to automate the creation of large, fake orders designed to attract new users to the exchange. The judge in the case cited the seriousness of Choi’s offense, while suggesting that he was trying to blame authorities for their failure to provide oversight. As Blockinpress reported, via Google translation:

"Choi has repeatedly committed fraud for many unspecified number of victims for a long period of time." The defendant blames the financial authorities for failing to repent of the mistakes and is transferring responsibility."

Author: Ken Chase

Freelance writer whose interests include topics ranging from technology and finance to politics, fitness, and all things canine. Aspiring polymath, semi-professional skeptic, and passionate advocate for the judicious use of the Oxford comma.

Mission Statement

DCEBrief is committed to focus on bringing issues that matter to your attention, utilizing an “Executive Summary” without fluff and filler. When appropriate, we may also include full length articles. Our mission is to keep you informed with timely information. We will need the cooperation of the mainstream media and the full support of our political leaders and regulators to help promote and not stifle innovation for the better good of mankind.